Ifo Business Climate Germany

Results of the Ifo Business Survey for May 2010

The Ifo Business Climate for industry and trade in Germany remains at nearly the previousmonth value. Both components of the indicator, the assessments of the business situation and the business expectations, show little movement in comparison to April. The firms are just as satisfied with their current business situation as they were in the previous month. Their business outlook has been appraised as minimally less favourable than in April. The economic recovery in Germany is robust.

In manufacturing the business climate has improved further. The business situation of the manufacturing firms is again more favourable than in the previous month. With regard to business developments in the coming six months, the firms are even more optimistic. In terms of foreign business, they again expect a more robust revival than previously. The firms plan only very isolated reductions in personnel.

The business climate in retailing and in wholesaling has clouded over somewhat. In both distribution sectors the survey participants are no longer as satisfied with their current business situation as they were in April. However, with regard to the sixmonth business outlook, the retailers are slightly less critical, whereas wholesalers are no longer as confident regarding future business as they were in the previous month.

In construction the business climate index has fallen again. Both the current business situation as well as the business outlook for the coming six months have been assessed as less favourable than in April by the surveyed contractors.

Hans-Werner Sinn
President of the Ifo Institute for Economic Research at the University of Munich

Ifo Business Climate in the German Service Sector

Results of the May 2010 Ifo Business Survey

Ifo Business Climate Indicator for the Services Unchanged

The Ifo Business Climate in the German service sector has stagnated in May at the previousmonth value, having previously improved three times in succession. The surveyed service providers have assessed their business situation and their business outlook as just as good as in April. The firms still plan to increase employee numbers, although with somewhat more caution than previously.

Hans-Werner Sinn
President of the Ifo Institute for Economic Research at the University of Munich